The effect of supply chain concentration on enterprise digital transformation: a research based on linear regression analysis

During the digital transformation process, enterprises are not only driven by internal factors but also affected by the external supply chain environment. So, will the supply chain environment have an impact on the digital transformation of enterprises? Therefore, this study aims to explore the impact of supply chain concentration on digital transformation and its underlying mechanisms. This study uses data from Chinese listed companies from 2019 to 2022. The results of linear regression analysis show that supply chain concentration has a significant negative impact on digital transformation. Furthermore, the findings suggest that cash holdings and innovation investment mediate this relationship. In addition, the results show that the degree of marketization suppresses the negative correlation between supply chain concentration and enterprise digital transformation, while financing constraints exacerbate this negative relationship.